British Steel risks collapse with 25,000 jobs threatened

By Guy Faulconbridge and Maytaal Angel LONDON (Reuters) – British Steel, the country’s second largest steel producer, is on the brink of collapse unless the government agrees to provide an emergency 30 million pound ($38 million) loan by later on Tuesday, two sources close to the situation said. Owned by investment firm Greybull Capital, British Steel employs around 5,000 people, mostly in Scunthorpe, in the north of England, while 20,000 more depend on its supply chain. Greybull, which specialises in trying to turn around distressed businesses, paid former owners Tata Steel a nominal one pound in 2016 for the loss-making company which they renamed British Steel. British Steel had asked the government for a 75 million pound loan but has since reduced its demand to 30 million pounds after Greybull agreed to put up more money, according one of the sources, who is close to the negotiations. Greybull was also the owner of Monarch, an airline that went bust https://www.reuters.com/article/us-monarch-airlines-licence/monarch-airlines-goes-bust-spoiling-holiday-plans-for-many-britons-idUSKCN1C70FQ in October 2017. If the British Steel loan is not approved by Tuesday afternoon, administrators EY could be appointed as early as Wednesday, the source said. British Steel and Greybull both declined to comment. “There have been ongoing discussions with the company and I am sure the House (of Commons) will understand that we cannot comment at this stage,” Andrew Stephenson, a junior business minister, told lawmakers in parliament. “I can however assure the House that, subject to strict legal bounds, the government will leave no stone unturned in its… [Read full story]